International Paper Co. (IP) is a paper and packaging company with operations in North America, Europe, Latin America, Russia, Asia, and north Africa. Market cap at $15.71B. Dividend yield at 2.92%, payout ratio at 33.05%.

Masco Corporation (MAS) distributes, and installs home improvement and building products for home improvement and new home construction markets in North America and Europe. Market cap at $4.86B. Dividend yield at 2.21%, with a loss last year, the payout ratio is meaningless

One of the issues with a stock selected by a hedge fund manager is that they may not plan to buy and hold for any length of time. So it could be that these are being held for other reasons. I note that MAS made a loss last year and that CLMT's payout ratio is 218% which is not sustainable in the long term. It could be that this is a blip but it causes concern.

The selections are diversified into different market segments and they range in size from around $1B to $275B. It will be interesting to see how the returns compare against our dividend bearing ETF portfolio

This selection of stocks is doing pretty well over the three year period but they suffered badly in the first of the market meltdowns. It also has seen some turbulence in the second half of 2011. All of these are solid companies that sell established products. It seems unlikely to me that any of them are going to have growth like Apple -- that is not their business. I can almost hear the people at Microsoft scream but the best they can hope for is solid growth in their Windows8 market.

Three Month Chart One Year Chart Three Year Chart Five Year Chart

This appears to be a reasonable set of stocks that has underperformed the benchmark in the longer term but has done better in the three and one year horizons and is still going. I think that their valuations are going to be tied to the recovery of the US market and I would keep a close eye on what David Tepper does with his holdings.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.